The US dollar experienced a clearer decline in the New York session yesterday following the influence of the United States (US) gloomy producer price index (PPI) data report.
The US producer inflation rate for July was lower than forecast and triggered expectations of consumer inflation (CPI) data to be published tonight also weak.
Expectations for the easing of monetary policy by the Federal Reserve (Fed) are increasing, but the market situation will be determined based on the CPI figures later tonight.
Examining the chart of the EUR/USD currency pair, the price has displayed a clear upward movement after being flat since last week above the 1.09000 zone.
The price surge towards the end of the New York session was seen reaching the target at the 1.10000 level which was an important resistance zone also tested in the previous week.
The price movement remains showing a bullish signal that is above the Moving Average 50 (MA50) support line on the 1-hour time frame on the EUR/USD chart.
Prices eased flat around 1.10000 to continue trading early in the Asian session this morning.
If the price shows movement beyond the 1.10000 level, yesterday's rising pattern will continue again, pushing the price to record the latest 7-month high.
The target for a higher increase is towards the target at 1.11000.
However, if the 1.10000 resistance fails, the decline could happen again for the price to re-approach the previous support zone at 1.09000.
A continued decline below the zone will trigger a bearish signal for the price with the risk of a lower fall imminent.
